Comparing current business start of Unicom with its competitor
to identify improvements in product & services to
improve digital and leadership capabilities
INDEX
1. Introduction……………………………………………………………….02
2. Literature…………………………………………………………………..03
3. A Comparative Study………………………………………………….05
4. Findings………………………………………………………………….....
5. Recommendation & Conclusion………………………………….
6. Reference………………………………………………………………….
1
Introduction
Digital Transformation is the new Buzzword for all the organizations whether established
or Startups. Going digital is irresistible for most of the businesses. Industry 4.0 is looking
ahead with infinite possibilities encompassing new and cutting age technologies like AI,
VR/AR/MR, IoT, Cloud, Robotics, Big Data and so on. The objective of this project is to
study one Indian Unicorn viz-a-viz its competitors to find out point of parity and point of
differences and discover the opportunity for improvement, especially with respect to
Digitalization, to harness competitive advantage.
With the tremendous expansion of e-commerce and globalization of businesses, logistics is
emerging as one of the most critical business drivers for successful operations. Many local
and international players have entered and expanded over a period to cater to this new
need. Considering the importance of logistic industry, we have selected” Delhivery” a
logistics company and Unicorn in India, which took its steps as a small start-up and now
considered to be among the best in its sector. As their tag line suggests, “Changing the
world, one shipment at a time”, it caters to the needs of small start-ups, individuals,
companies, retailers, and more by delivering its services such as third-party &
warehousing, reverse logistics, payment collection, last-mile delivery and more.
Logistics Industry is highly competitive, there is cut-throat competition among various
companies. You cannot slack off even for a short amount of time. Due to it’s never-stopping
growth, Delhivery is giving a head-bent competition to other similar logistics companies
such as Ecom Express, Future Supply Chain (FSC), DotZot, Delex, BlackBuck, FedEx, Bludart,
DHL, Shadowfax etc. etc.
We have selected DHL, Bludart and Shadowfax being prominent competitor to Delhivery
for comparison on various business parameters.
Bludart is known for the best courier service provider in India. It was initially started in
Chennai and gradually grew to become one of the quickest courier services in Asia. It is not
just a go-to courier service in India but also ships to 220 countries throughout the world. It
offers to pick up facility and express Delhivery. DHL is also one of the best course services
in India. It can be used to ship in India as well as 220 countries in the world. Shadowfax is a
fast courier service and offers a host of facilities like pickup, express delivery, reverse
shipping etc.
2
The project report presents and explains the comparison of Delhivery with selected peers
on various important business parameters along with data interpretation. Further, basis
analysis major findings are highlighted followed by recommendations and conclusion.
3
Literature
INDIAN LOGISTICS SECTOR OVERVIEW
Large and growing sector underpinned by strong, sustainable growth drivers
With a direct spend of US$216 billion in Fiscal 2020, India's logistics sector is one of the
largest in the world and offers a sizable addressable opportunity. The sector is expected to
grow at a CAGR of 9% to US$365 billion by Fiscal 2026, owing toStrong underlying
economic growth
Favorable regulatory environment in logistics, resulting in evolution of efficient
supply chain formats
Improvement in India’s transportation infrastructure, especially highway
connectivity
Growth of the domestic manufacturing sector, driven by favorable policy support
and increased domestic and foreign investments
Rapid growth of the digital economy, which has led to creation of digital-native
business models such as ecommerce, direct-to-consumer, and social commerce
Growth in offline commerce driven by increased offline consumption, industrial
activity, and cross border Trade logistics market is primarily comprised of
transportation and warehousing, of which transportation accounted for 70%, or
US$151 billion in Fiscal 2020.
In Fiscal 2020, organized players accounted for only 3.5 percent of the logistics market
(road transportation, warehousing, and supply chain services combined). Organized
players are expected to grow at a CAGR of 35% between Fiscal 2020 and Fiscal 2026,
increasing their share of the logistics market to 12.5-15% by Fiscal 2026. (Road
transportation, warehousing & supply-chain services only). This shift is expected to be
driven by organized players' ability to offer integrated services, network and scale-driven
efficiencies, and larger investments in technology and engineering, which will result in a
higher share of wallet with customers. Furthermore, the Indian logistics industry has high
indirect spends due to high inventory carrying costs, pilferage, damage, and wastage.
Indirect spending was estimated to be US$174 billion in Fiscal 2020 and is expected to fall
to US$166 billion by Fiscal 2026. Organized players will drive this reduction through
superior logistics infrastructure that reduces pilferage and damages, efficient operations
that reduce turnaround time and better utilize logistics network capacity, and scale that
drives consolidation and eliminates redundancies.
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Digital Transformation in Logistics.
The concept of Industry 4.0 has had an impact on almost every industry. Logistic Service
Providers must improve their value proposition for shippers and customers to remain
competitive and grow. This includes increasing operational efficiency by addressing
industry issues like high fragmentation, low transparency, underutilized assets, costly
manual processes, and in many cases outdated customers, as well as providing a better
customer experience through smarter, faster, and more sustainable logistics.
Technology is crucial in logistics value differentiation. It inspires and facilitates innovation,
propelling logistics to a higher level of efficiency and responsiveness. It is critical to
recognize the stage from which one's DT departs. Understand where one is going, identify
roadblocks, and implement success factors through best practices to advance digital
transformation.
In recent years, the logistics industry has seen massive advancements in areas such as
artificial and augmented intelligence, advanced analytics, and automation, to name a few.
These technologies have evolved faster than ever before, while startups with even more
novel solutions and innovations continue to emerge at an alarming rate. However, these
innovations bring with them new expectations and standards, forcing logistics companies
to adapt or fall behind. Customers, both individuals and businesses, are putting a lot of
pressure on companies to deliver products and services faster and cheaper than ever
before. A few examples of logistics technology are listed below
1. Artificial and Augmented Intelligence - The logistics industry has begun to
incorporate Artificial Intelligence solutions into their operations, such as intelligent
transportation, route planning, and demand planning. Along with AI, Augmented
Intelligence is expected to grow in popularity. Augmented intelligence is the
combination of human intelligence and AI-assisted processes. In logistics planning,
for example, Augmented Intelligence may be superior to AI alone because it can
combine inputs from human planners (experience, responsibility, customer service,
flexibility, common sense, etc.) with AI technology that is left to do the repetitive
and tedious work.
2. Real-Time Supply Chain Visibility - Customers and carriers are more interested in
real-time data than ever before, and it provides technology that promotes quick
response to change by allowing businesses to use real-time data.
3. Blockchain - Blockchain has become one of the most overhyped logistics
technology trends, as well as one of the most popular buzzwords in any industry.
Blockchain is an open ledger of transactions shared by computers in a network.
Because everyone on the shared blockchain has access to the same transaction
ledger, there is complete transparency, making it impossible for users to hack or
trick the system and, as a result, eliminating the need for third-party involvement.
5
A Comparative Study
Company Overview – Delhivery (Primary Unicorn)
Sahil Barua and two friends founded Delhivery in May 2011 with the goal of increasing the
speed of food delivery in India's National Capital Region. On June 22, 2011, it was
incorporated as "SSN Logistics Private Limited," a private limited company under the
Companies Act, 1956, in New Delhi, pursuant to a certificate of incorporation issued by the
Registrar of Companies, National Capital Territory of Delhi, and Haryana. Following that,
our Company's name was changed to "Delhivery Private Limited" in accordance with a new
certificate of incorporation issued by the RoC on December 8, 2015. Following the
conversion of the Company to a public limited company by a resolution passed by our
Shareholders on September 29, 2021, the name of our company will be changed to
“Delhivery Limited”.
To meet the needs of ecommerce players, the third-party logistics industry was rapidly
expanding. Barua and his friends took advantage of this opportunity and expanded their
business beyond food to include other products. The value proposition was built around
two major factors: supply speed and cash management. They quickly established credibility
with clients and expanded their operations to include transportation, warehousing, freight
services, and data services.
Delhivery completed 175 million shipments across 10,000 pin codes in six years. The
company fulfilled over 10 million orders per month with 99 percent fidelity and delivery
times ranging from 30 minutes to 72 hours.
COMPARATIVE STUDY ON FOLLOWING PARAMETERS
Delhivery DHL Bludart Shadowfax
Express shipping Express shipping Express shipping E-commerce shipping
Same day delivery Weather resistant packages COD services Hyperlocal i.e., same city
Reverse shipping Time/slot-based delivery. Automated proof of delivery 30-minute deliveries.
COD services Reverse shipping Weather resistant packages
Time/Slot based delivery
1. Services Offered
2. User journey & experience
a. Delhivery:
b. Shadowfax:
c. Bludart:
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d. DHL:
3. Geographies operating in
a. Delhivery: Currently Delhivery is operational in 1000 cities in India and
work with external vendors to extend services to geographies which are
currently not serviced by Delhivery internal operations.
b. Shadowfax: Operational in 900 cities
c. Bludart: Delivers to 36,669 locations serviced in India,
d. DHL: Operations in all cities in India.
4. Additional features
Features Delhivery Bludart DHL Shadowfax
E-Commerce return service √ √ √ √
Payment Collection and processing √ √ √ √
Installation and assembly services √
Fraud detection √
On – Demand Delivery / Same day √ √ √ √
delivery
5. Partners and key customer segments
Delhivery has around 6000+ Network partners and 21,000+ Active customers. They
provided supply chain solutions to a diverse base of Customers such as
1. e-commerce marketplaces
2. direct-to- consumer
3. e-tailers and enterprises and SMEs
Across several verticals such as FMCG, consumer durables, consumer electronics, lifestyle,
retail, automotive and manufacturing.
This is achieved through high-quality logistics infrastructure and network engineering, a
vast network of domestic and global partners and significant investments in automation, all
of which are orchestrated by their self-developed logistics operating system that is guided
in real-time by deep sources of proprietary network and environmental data. Together,
these create intersecting flywheels that drive network synergies within and across services
and enhance the value proposition to customers.
Delhivery’ s Asset - light approach is to invest in critical service elements and IP-sensitive
areas of the network, while delivering services through many network partners. Network
partners with warehousing, freight (truckload or air) or first/last-mile capacity can sign up
and find customers through their partner applications. Their systems function as managed
marketplaces that match partner capacity with Delhivery internal and third-party client
demand based on partners’ service quality ratings and pricing.
Delhivery’ s Partnership program:
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1. Constellation: Constellation partners extend Delhivery’ s transportation network to
geographies which are currently not serviced by Delhivery internal operations.
2. Last-mile agent: Last-Mile Agent (LMA) program enables self-employed individuals
to sign up and extend pick-up and delivery services across India. All a partner needs
are a two-wheeler, valid driving license, and android mobile phone to enrol.
Delhivery’ s LMA program has enabled over 33000 partners across India.
3. Drop at Store: Drop at Store (DAS) program enables small businesses and local
retailers to provide pick-up and delivery capacity to the Delhivery network in cities
serviced by Delhivery ’s express network.
4. Franchisee: As a courier partner, you will get access to Delhivery’ s shipping
solutions for consumers.
Delhivery DHL Bludart Shadowfax
Partners 6000+ NA NA 1,00,000+
Key Flipkart, Amazon, Flipkart, Swig
Customers Snapdeal, gy, Zomato, 1MG, Bigba
eBay, sket, Myntra,
Amazon, McDonald's, Samsung,
Myntra, and Unilever
Jabong and
Healthkart
6. Technology Features:
a. Delhivery:
i. Automated shipping label generation
ii. Live order tracking
iii. Monitoring order delays and cancelling orders.
iv. Displaying of accurate estimated delivery time
b. Shadowfax:
i. Live order tracking
ii. API integration of client is available.
c. Bludart:
i. Live order tracking
ii. Monitoring order delays/ failed deliveries
d. DHL:
i. Live order tracking
ii. Monitoring order delays/ failed deliveries
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Findings (400 words)
1. Insights based on above data that can be translated into improvements for the firm
9
Recommendations & Conclusion
2. List of improvement recommendations in order of priority (based on value created and ease of
implementation)
10
References
1. Reference
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